1. Briefly discuss key challenges that lndian manufacturing corporate are facing in manufacturing and related operations. How can these be tackled? List some management initiatives and policies which can be used in this regard.

(14)

2. (a) A company wants to set-up an engineering prefabrication unit, near Delhi, say, within 300 kms. What possible locations should be preferred and why? Give only precise reasons.

(7)

(b) A factory's receiving dock would despatch parts to seven areas in the plant, shown in the matrix as 1-7. The receiving dock can be located at either A or B in the facility. The number of loads per month is shown in brackets while the distance in metres to A and B is given in parameters. Unit -, cost of movement is Rs. 10 per metre. Which position is best - A or B? Why?

A 1 B(90)

2 3 4(60) (30) (50)

[A:l, B:2] [A:2, B:1]5 6 7

(40) (90) (70)[A:2, B:2] [A:2, B:2]

Departments 1, 3 and 6 are equidistant from A and B. (7)

3. (a) Briefly discuss one quality management technique that would ensure quality at design stage.

(7)

(b) A manufacture of ball-bearings has the specifications for diameter as 245 mm ± .85 mm. The process planning department proposed two processes - A and B for manufacturing the ball bearings. After extensive pilot runs, the processes were

statistically stabilised. The performance of the two processes is tabulated as follows:

The production department wants to know which of these processes is suitable for commercialisation. Compute relevant measures and give appropriate recommendations to the production department.(7)

4.

(a) 'What are the performance measurement metrics for a line layout? Mention and formulate at least four. (4)

(b) A manufacturing organisation is in the process ofassessing the usefulness of SPT and EDD rules for the purpose of scheduling four jobs on a machine. The table that follows shows the information pertaining to the processing time and due dates for the jobs. Assuming that release time of all jobs is zero, compute the relevant performance measures and comment.

Job No. Process Time Due Date

(days)(days from

now)1 4 62 7 9

2

5.

(a) What does 'Six-sigma' approach to quality refer to ? How it can' be accomplished? (7)

(b) A time study analyst wants to estimate the time required to perform a certain job. A preliminary study yielded a mean of 6.4 minutes and a standard deviation of 2.1 minutes. The desired confidence level is 95%. How many observations will be needed if the desired maximum error is :

(i) ::i: 10% of the sample mean

(ii) One-half minute

(7)

6.

A centinuous review system has been designed for an item OIl the basis of following information:

Annual demand

10,000 units

Unit Cost

Rs.5

Inventory carrying cost

20%

Ordering cost per order

Rs. 200

Lead Time

1 week

Safety Stock

2000 units

An average ?afety stock of 2000 units was maintained throughout the year. After one .year, it was observed that the system was

developed on wrong data. Instead the correct data were as fa 110ws :

Annual demand

12,000 units

Unit Cost

Rs.4.00

Ordering cost per order

Rs. 400

. L ad Time

0.5 week

Desired Safety Stock

1,000 units

Inventory carrying costs were same. Determine extra

variable costs incurred due to wrong estimation and'. .

design of inventory system. (14)

7.

(a) Briefly discuss types of wastes considered in

a production system operationalising JIT.

with

reference' to

(4)

(b) A paint manufacturing company uses 3400'kgs ofa chemical dye per year. Currently, the firm purchases 300 kgs per order and at Rs. 3 per kg. The manufacturing firm incurs a cost of Rs. 100 each time an order is put and assigns an annual

holding cost of 17%. The supplier has just offered that orders of 1000 kgs or more will be filled at . a price of Rs. 2 per kg.

(i) Determine the order size that wi]! m 1111J1l1S< the total cost.

Annual demand

: 1,00,000Iitres

.

Inventory carrying costs

. Rs. 20 per litre per year

Ordering (set up) cost

: Rs. 10,000 per order

Rate of production

: 4,00,000 litres per year

Working days

. 300 days/year

(8)

8.

'>.

(a) How is product design different from servIce. .

design? Consider an organized reta:il outlet,and identify its different attributes from the perspective of customers. With the help of Quality Function Deployment (QFD), show how these customer attributes can be translated into realistic

possibilities.

(10)

(b) An analyst has been asked to prepare an estimate of time that a lathe operator spends adjusting the machine with a 90% confidence interval based on previous experience, the analyst believes the proportions will be approx. 30. percent. If the analyst uses a sample of 400 observations, what is the maximum possible error that wi Il be associated with the estimate?

(4)